NEW YORK (AP) – Payless ShoeSource has filed for chapter 11 bankruptcy protection and is closing its remaining stores in North America, including the Sumter store located at 1021 Broad St.
The deposit Monday was held a day after the start of sales of the shoe chain in its North American stores.
The company, based in Topeka, Kansas, has updated the number of stores it currently closes to 2,500, against 2,100 previously cited Friday, when it confirmed its intention to wind up its business. He recalled that the stores would remain open until at least the end of March and that the majority would remain open until the month of May.
The liquidation will not affect his franchising business or his Latin American stores, which remain open as usual, he added.
The debt chain filed for first-ever Chapter 11 bankruptcy protection in April 2017, closing hundreds of stores as part of its reorganization.
"The challenges retailers are facing today are well documented and, unfortunately, Payless was born from its previous reorganization, poorly equipped to survive in the context of retail," said Stephen Marotta, head of restructuring of Payless ShoeSource.
He noted that previous Chapter 11 proceedings had left the company with too much debt and too many stores.